The consulting industry has been evolving rapidly over the last few years. Consulting business models have adapted as firms respond to their clients’ needs for digital solutions, advanced analytics, and AI. Big players in the consulting industry have expanded their capabilities through strategic acquisitions. Boutique players continue to enter the market, threatening the bigger players with their lower fee offerings. Additionally, large corporations have increased their reliance on in-house strategy houses.

Amidst structural changes in the consulting industry, the industry has continued to grow. Many notable players have seen growth in consulting revenues between 5-16%.

Amidst structural changes in the consulting industry, the industry has continued to grow. Many notable players have seen growth in consulting revenues between 5-16%.

Overall, the impact of these changes on consulting salaries has put upward pressure on U.S. MBA/PhD salaries this year. For example, MBB have increased their MBA/PhD base salaries to $165,000, and other firms have increased MBA/PhD salaries to follow suit. And if they haven’t yet, many firms are actively considering raising them. However, although MBA/PhD salaries have increased, undergraduate/master’s salaries have remained relatively stable.

The type of hiring consulting firms are conducting is also changing. This year, many consulting firms have increased their recruitment of specialists (especially those with technological expertise), experienced hires, and candidates from non-target schools.

Below are salary figures for those joining management consulting positions in 2019. The data comes from ourinterview prep clientswho received job offers, ourwebsite readers (like you!), and firm representatives. The salary data is for those recruited straight from an undergraduate, master’s, MBA, or PhDprogram. All salary figures are in U.S. dollars unless otherwise stated.

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Internship Salaries

Internships range from 9-12 weeks in the United States to 10-16 weeks in Canada and the EMEA. Monthly internship salaries are typically prorated based on starting salaries for new hires. Here are the 2019 internship salaries:

Management Consulting Salary Insights

Management Consulting Bonuses

What fun are full-time consulting offers when there is no bonus? Full-time hires can receive signing bonuses, relocation bonuses, end-of-year performance bonuses, and more. Interns are less likely to receive bonuses, although some firms do offer relocation or signing bonuses. When analyzing these bonuses, there are 6 things you should keep in mind:

Consider differences in base salary more than differences in signing and relocation bonuses. Your salary during your 2nd (and sometimes 3rd) year at the firm is often a function of your initial base salary. All else held equal, we would recommend choosing a base salary of $82,000 with a $5,000 signing bonus over base salary of $80,000 with a signing bonus of $7,500.

On your offer letter, the listed maximum amount of the performance bonus is usually only awarded to the top 5-10% of employees. Average performers often receive bonuses closer to half of the maximum amount, while poor performers typically only receive a small bonus if any. Also, firms that pay overtime may choose not to offer a performance bonus.

The size of the relocation bonus is primarily driven by the distance from your university to the office location. If you live in the same city as the office, you are sometimes offered no bonus or a smaller bonus (~$2,000 in the U.S.). However, if you live in a distant state or country, you are typically offered the firm’s maximum relocation bonus amount.

Although the signing bonus is typically the same across all new hires into a certain position, returning interns may receive a different signing bonus (or a different base salary in some cases) as opposed to new full-time hires.

Relocation and signing bonuses are commonly distributed soon after signing your contract. However, they may be distributed on your start date (e.g. at IBM GBS) or given in increments over several years (e.g. L.E.K.).

Bonuses are usually taxed. Uncle Sam loves your bonuses and will make sure to get his share. So don’t forget to account for taxes when planning your bonus spending (or saving, for the wise ones). Taxes may be deducted when receiving bonus payments or they may be withdrawn from future paychecks, putting a small temporary dent in your future monthly income.

Salary Growth Along the Management Consulting Career Path

The salaries above are for full-time hires and interns coming straight from university. Before deciding on an offer, we’d recommend considering how your salary will grow across time. Often, our interview prep clients will receive slightly higher job offers in tech than in consulting. However, the salary growth in management consulting outpaces many industry positions. Because of that, the net income after a few years in consulting can exceed those in other industries, despite an initially lower base pay.

In top consulting firms, you can typically expect a 10-20% increase in your base pay and/or performance bonuses each year. Additionally, when promoted to the next level (which usually happens every 2-3 years), the increase in your income is substantially larger. For instance, when promoted from Associate to Consultant at BCG, your base salary almost doubles. Here’s the potential salary growth trajectory of someone working at a top consulting firm in the U.S.:

First-year out of Undergrad/Master’s program:

Base: ~$80k

Signing Bonus: ~$5k

Performance Bonus: up to ~$12k

First year out of MBA/PhD program:

Base: ~$150k

Signing Bonus: ~$25k

Performance Bonus: up to ~$44k

Manager/Project Leader (2-3 years out of MBA/PhD) program:

Base: $190-210k

Bonus: $80-120k

Associate Principal/Senior Project Leader (4-5 years out of MBA/PhD) program:

Base: $230-300k

Bonus: $110-200k

Junior Partner/Principal (6-8 years out of MBA/PhD) program:

Base: $320-400k

Bonus: $300-500k

Senior Partner/Director (10+ years out of MBA/PhD) program:

Base: $400-600k

Bonus: $500k+

Note that most full-time recruits will not make it to Partner. Many consulting firms have an up-or-out promotion structure. Those who perform exceptionally are given the chance to be promoted while poor performers are encouraged to seek employment elsewhere. Because of the up-or-out structure and attractive exit opportunities, only a small percentage of recruits make it all the way to Senior Partner. Regardless, the salary growth is substantial for each promotion you receive at a consulting firm.

Salaries When Exiting Management Consulting

Although your salary increases relatively rapidly within a top consulting firm, you typically receive a pay increase when leaving. In the U.S., the average consultant who accepts an industry position receives a 12-20% increase in pay and a better work-life balance. Those entering the financial services industry often receive a 30%+ increase in compensation—but their work/life balance often takes a hit.

Large Salary Variation Across International Offices

There is a large variation in management consulting salaries within firms across different countries. We have observed extremely high management consulting salaries in the U.S. due to intense competition with Silicon Valley and Wall Street. The United Arab Emirates, Singapore, Switzerland, Canada, and Australia also boast relatively high consulting salaries. And surprisingly, consulting salaries in London are relatively lower given its high cost of living.

Overall, consulting salaries seem to be competitive within their country, often offering salaries over 20% above the average for other professional service firms. If you accept a consulting offer in any country, you will likely be paid more than the average local employee with a similar tenure in professional service industries.

Small Salary Variation Across Domestic Offices

At McKinsey, Bain, and BCG, management consulting salaries are relatively flat across all offices within a country. This has two important implications. First, there is often little room for salary negotiation unless you are a hotshot or experienced hire. Second, you can increase your take-home income by choosing an office location where the cost of living is lower (e.g. choosing Atlanta over San Francisco).

In other firms, salaries are sometimes adjusted to account for living costs. For example, a Big 4 consultant working in New York often receives a slightly higher salary than a Big 4 consultant in Dallas.

Salaries for Master’s and PhD Students

Many consulting firms offer master’s students the same positions as undergraduate students. Because of that, master’s students often receive the same compensation as undergraduates. However, when a master’s student applies for a relevant technical position (e.g. data scientist), they can receive more compensation than an undergraduate counterpart. Likewise, PhDs often receive the same compensation as MBAs.

Conclusion

This year, management consulting salaries have been relatively stable at the undergraduate/master’s level, while post-MBA/PhD salaries have seen a moderate rise to keep up with industry demand. Overall, consulting salaries remain highly competitive when compared to other industries. Finance firms are a notable exception—their salaries are higher but their work-life balance is often worse. Technology firms also compete with consulting firms for talent. They often proffer higher salaries but their roles are often more siloed and the promotion trajectory is often slower.

Do you have any consulting salary data or comments that you would like to share? You can fill out this anonymous form, add a comment below, orsend us an email. As we attempt to provide qualitycompensation data to our readers, we appreciate any data that you share. As always, your anonymity is guaranteed.

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